BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

SPECIALIST

BRIDGING LOANS

KNOWLEDGE BASE

It   is   sometimes   the   case   that   applicants   seeking   bridging   finance   simply   do   not   have   enough   available   equity   in   their   property   assets   to   satisfy   the loan   to   value   (LTV)   requirements   of   mainstream   lenders.   High   Street   lenders   with   conventional   funding   lines   need   to   respect   their   funding   covenants, the rules by which their lending decisions are governed. By   contrast   lenders   with   a   more   diverse   funding   base   who   are   not   wholly   reliant   on   institutional   funding   lines   can   sometimes   be   more   flexible   and consider bespoke security structures. They can look beyond just traditional property-based security. What forms can these Specialist Loans take? One   form   of   Specialist   Loan,   perhaps   best   be   termed   as   a   Private   Equity   Loan,   can   allow   applicants   to   offer   share   options   they   hold   as   the   principal form   of   security   in   instances   where   they   do   not   have   enough   equity   in   their   property.   These   share   options   would   need   to   be   held   in   a   FTSE   or   AIM listed company. In   these   instances,   the   lender   will   take   a   ‘legal   wrap’   around   the   options   which   effectively   assigns   ownership   of   shares   if   the   loan   subsequently defaults. As an additional comfort the lender will probably also still take a charge against the applicant’s property despite the high LTV. Another   acceptable   form   of   security   for   a   Specialist   Loan   can   be   an   Investment   Bond   where   again,   specialist   legal   paperwork   can   be   drafted   allowing the bond to effectively become the principal collateral for the loan. Aside   from   shares   and   bonds   other   forms   of   security   used   for   Specialist   Loans   can   be   very   diverse   and   range   from   businesses   plant   and   equipment to   a   High   Net   Worth   individuals   (HNW)   privately   owned   assets   such   as   cars,   jewellery   or   art.   Before   granting   a   loan,   the   lender   will   obviously   need   to carefully assess the assets to be taken as security to determine their value. In   the   event   that   share   options   or   a   bond   are   to   be   used   as   the   principal   security   the   lender   will   almost   certainly   seek   specialist   legal   advice   to   perfect the   paperwork.   It   will   come   as   little   surprise   to   learn   therefore   that   Specialist   Loans,   given   their   slightly   unusual   nature,   will   generally   be   a   little   more expensive   than   standard   bridging   loans.   Despite   this   premium   however   they   can   be   incredibly   useful   to   borrowers   in   situations   where   they   would otherwise be unable to borrow the monies they require. Still unsure and need to explore your options? Why not consult an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record.   We   are   a   principal   lender   offering   a   range   of   loan   facilities   for   business   use from £250K to £2.5M over periods from 3 to 24 months. Our loans are secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to   understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks   will then tailor a solution that best suits your needs rather than their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506   Email: enquiry@centralbridging.co.uk   Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

It    is    sometimes    the    case    that    applicants    seeking    bridging    finance simply   do   not   have   enough   available   equity   in   their   property   assets   to satisfy   the   loan   to   value   (LTV)   requirements   of   mainstream   lenders. High   Street   lenders   with   conventional   funding   lines   need   to   respect their   funding   covenants,   the   rules   by   which   their   lending   decisions   are governed. By   contrast   lenders   with   a   more   diverse   funding   base   who   are   not wholly   reliant   on   institutional   funding   lines   can   sometimes   be   more flexible    and    consider    bespoke    security    structures.    They    can    look beyond   just   traditional   property-based   security.   What   forms   can   these Specialist Loans take? One   form   of   Specialist   Loan,   perhaps   best   be   termed   as   a   Private Equity   Loan,   can   allow   applicants   to   offer   share   options   they   hold   as the   principal   form   of   security   in   instances   where   they   do   not   have enough   equity   in   their   property.   These   share   options   would   need   to be held in a FTSE or AIM listed company. In    these    instances,    the    lender    will    take    a    ‘legal    wrap’    around    the options    which    effectively    assigns    ownership    of    shares    if    the    loan subsequently    defaults.    As    an    additional    comfort    the    lender    will probably    also    still    take    a    charge    against    the    applicant’s    property despite the high LTV. Another   acceptable   form   of   security   for   a   Specialist   Loan   can   be   an Investment    Bond    where    again,    specialist    legal    paperwork    can    be drafted     allowing     the     bond     to     effectively     become     the     principal collateral for the loan. Aside    from    shares    and    bonds    other    forms    of    security    used    for Specialist   Loans   can   be   very   diverse   and   range   from   businesses   plant and    equipment    to    a    High    Net    Worth    individuals    (HNW)    privately owned   assets   such   as   cars,   jewellery   or   art.   Before   granting   a   loan, the   lender   will   obviously   need   to   carefully   assess   the   assets   to   be taken as security to determine their value. In    the    event    that    share    options    or    a    bond    are    to    be    used    as    the principal   security   the   lender   will   almost   certainly   seek   specialist   legal advice   to   perfect   the   paperwork.   It   will   come   as   little   surprise   to   learn therefore   that   Specialist   Loans,   given   their   slightly   unusual   nature,   will generally    be    a    little    more    expensive    than    standard    bridging    loans. Despite    this    premium    however    they    can    be    incredibly    useful    to borrowers    in    situations    where    they    would    otherwise    be    unable    to borrow the monies they require. Still   unsure   and   need   to   explore   your   options?   Why   not   consult   an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record. We    are    a    principal    lender    offering    a    range    of    loan    facilities    for business   use   from   £250K   to   £2.5M   over   periods   from   3   to   24   months. Our    loans    are    secured    on    freehold    property    across    England    and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time to   understand   you   and   your   situation   and   unlike   some   of   the   bigger banks   will   then   tailor   a   solution   that   best   suits   your   needs   rather   than their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506  Email: enquiry@centralbridging.co.uk Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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SPECIALIST

BRIDGING LOANS

KNOWLEDGE BASE

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